INDEX

SL. NO. TOPCS PAGE NO

1. Executive summary 3

2. Chapter-1 Introduction & organizational profile 4-7

3. Chapter-2 Design of the study 8-12

4. Chapter-3 Discussion / Work description 13-60

5. Chapter-4 Learning outcomes 61-64

Bibliography 65

Annexures

Letter of application to the employer for internship

Letter of acceptance by employer

1
 ACKNOWLEDGEMENT

The success and final outcomes of this internship report required a lot of
guidance and assistance from many people and I am extremely fortunate to
have their support till the completion of my report work.

 First I would like to thank Mr.O.P.JAYASEELAN for giving me the

opportunity to do an internship within the organization
 I would like to express my special thanks of gratitude to our faculty
Coordinator Mrs. BHAYASHREE as well as our principal Mr.Prakash
Reddy who gave me the golden opportunity to do internship, which
helped me in learning a lot of new things and also a warm exposure to
the world of accountancy and finance
 I would also like to thank my parents who gave me the permission to
complete the internship and also my friends who helped me when
there was a need during the project.
 Although this report has been prepared with utmost care and deep
routed interest, even then I accept it respondent and imperfect.
 It is a great opportunity and pleasure for me to express my profound
gratitude towards all the individual who directly and indirectly
contributed towards completion of this report

2
 EXECUTIVE SUMMARY

I PAVITHRA.S currently pursuing my graduation in Bachelor of

Commerce with Accountancy and Finance at Vishwa Chethana
Degree College.

 B Com is an undergraduate programme under NEP scheme.

This course connects the classroom learning to the real world
environment. An individual can learn practical, professional
and technical skills associated with many of the procedures of
financial analysis and accounting standards.

 Bangalore University B Com programme we are having a

subject internship in which we have to work hands-on training
under a AUDITOR ,O.P. JAYASEELAN for a period of
3weeks.

 As a part of academics, I did my internship at O.P.

JAYASEELAN & Co. Auditors & Consultants. for 18 days (90
hours). In this period I have learnt to access tally software , Gst
returns, make entries of Bank Statement and Purchase and
Sales bills, export data from tally into excel. Calculation of
GST values such as CGST and SGST. I have also learnt to
create a company in Tally and also to split company data in
tally. The Creation of ledgers was also which I learnt there.
 Calculation of GST values such as CGST and SGST. I have also
learnt to create a company in tally and also to split company data in
tally. Creation of ledgers was also which I learnt there.

 This project is about my internship and detailed information about

the tasks which had been undertaken by me during this internship
period.

3
4
 CHAPTER-1 –INTRODUCTION & ORGANIZATIONAL
PROFILE

“A Comparative study of GST retun”

The title of the project study “ A Comparative study of GST return” gives us
broad knowledge about GST and analysis of GST retun. The study also helps to
know how auditing of various GST return done in practical world of finance.

The Goods and Services Tax, or GST, is an indirect tax law applicable across
India. It has replaced multiple indirect taxes such as excise duty, service tax,
value-added tax, octroi, entry tax, and luxury tax. Laws pertaining to the same
were put into effect on July 01,2017, in India. The indirect taxation system has
gone through multiple amendments since to arrive at the current juncture.
However, it must be noted that GST does not replace customs duty, which is still
mandatory on imported goods and services.

Every kind of product and services attracts a different tax rate under GST. For
example, luxury or sin goods are classified to attract a higher interest rate,
whereas necessities have been included in lower and nil rate slab rates.

GST:

The Goods and Services tax , or GST, is an indirect tax law applicable across
India. It has replaced multiple indirect taxes such as excise duty, service tax,
value-added tax , octroi, entry tax, and luxury tax.

5
 VISION AND MISSION

The purpose of this report is to provide an overview of the O.P.

JAYASEELAN & Co. Auditors & Consultants., Audit Office where I had
taken up my INTERNSHIP.

O.P. Jayaseelan & Co is a private audit firm and a professional firm specialized
in providing auditing and assurance services to various clients across different
industries. With a team of highly skilled auditors and experts, the office aims to
deliver high-quality services that meet the unique needs and requirement of the
clients.

O.P. Jayaseelan & Co in Hosur is one of the leading businesses in the Auditors.
Also known for Manpower Suppliers, Auditors, GST Registration Consultants,
Income Tax Consultants, Company Registration Consultants, Tax Return Filing
Agents, Accountants, Accounting Services and much more.

6
7
8
9
10
O.P. JAYASEELAN & CO.

No.28, 2nd CROSS, KAMARAJ COLONY, OPP. IDBI BANK, HOSUR –

635109. KRISHNAGIRI DIST. (TAMIL NADU) INDIA

CONTACT NUMBER: 9443326623

OFF NUMBER: 04344-225136

E-MAIL ID: [email protected]

WORKING HOURS: MONDAY TO SATURDAY – 9.30 am to 6.00 pm

SUNDAY: CLOSED.

SERVICES RENDERED : AUDITING, ACCOUNTING, TAX

CONSULTANCY, INCOME TAX FILING, GST FILING, INCOME TAX

11
AUDIT, COMPANY REGISTRATION, LLP REGISTRATION, GST
REGISTRATION, GST AUDIT, CONCURRENT AUDIT, INTERNAL AUDIT,
STATUTORY AUDIT, MSME REGISTRATION, COMPANY CLOSURE, EPF
AND ESI REGISTRATION, PARTNERSHIP REGISTRATION, TDS FILING,
TAX REPRESENTING, DEALING WITH INCOME TAX NOTICE AND GST
NOTICE, OTHER PROFESSIONAL SERVICES.

Team and Staffs: -

Founder – CA O.P. JAYASEELAN
Manager – MADHU
Staff
1. NADHIYA

Article Assistant –

1. Madhu
2. Nadhiya
3. Sumithra
4. Sumathi
5. Rajan

12
HISTORY OF GST

YEAR EVENT

2000
PM Atal Bihari Vajpayee sets up a committee to draft
the Goods & Services Tax law for India.

2004 A task force is put together to figure out the

requirements to create and implement GST with the
purpose of improving the indirect tax system.

2006 The Finance Minister of India, P. Chidambaram,

schedules the introduction of the Goods & Services
Tax on April 01, 2010.

2007 The decision to phase out Central Sales Tax (CST) is

made, after which CST rates are reduced from 4% to
3%.

13
2008 The EC finalises the dual structure of GST for separate
legislation and levy.

2010 The introduction of GST is postponed citing structural

and implementing hurdles.

2013 The Standing Committee presents its report on GST.

2014
The Finance Minister of India reintroduces the GST Bill
to the Parliament.

2015 The Lok Sabha approves the Bill but it gets stalled in
the Rajya Sabha.

2016 The Goods and Services Tax Network (GSTIN) goes

live; simultaneously. The GST Bill as well as all
amendments made up until this point get approved by
the President of India.

2017 The Cabinet approves the creation of four

supplementary bills on GST. Post which, the Goods &
Services Tax Law gets implement in full force on July
01, 2017.

14
GST:

Goods and Services Tax (GST) is a comprehensive indirect tax levied on the
supply of goods and services at each stage of the production and distribution
chain. It is designed to streamline the taxation system by replacing multiple
indirect taxes such as excise duty, service tax, and value-added tax (VAT) with a
single unified tax, thereby eliminating cascading effects and promoting a more
efficient and transparent tax regime.

One of the fundamental components of the GST framework is the requirement for
taxpayers to file GST returns, which serve as a mechanism for reporting their
taxable transactions to the tax authorities. GST returns play a crucial role in
facilitating compliance, revenue collection, and the enforcement of tax laws.

The introduction of GST returns represents a significant shift in the way

businesses interact with the tax system. It not only necessitates a thorough
understanding of the tax laws and regulations but also requires taxpayers to
maintain accurate records of their transactions and promptly file their returns
within the prescribed deadlines.

In this comparative study, we will explore the evolution of GST returns,

comparing the pre-GST and post-GST scenarios, analyzing the impact of GST
returns on various stakeholders, and examining the experiences of countries that
have implemented similar tax regimes. By doing so, we aim to gain insights into
the effectiveness, challenges, and opportunities associated with the introduction of
GST returns.

AN OVERVIEW OF GST RETURNS

15
GST returns are periodic statements that businesses registered under GST need to
file with the tax authorities. Here's an overview:

1. *Types of GST Returns*: There are various types of GST returns applicable
depending on the type of taxpayer and their transactions. Some common types
include GSTR-1 (for outward supplies), GSTR-3B (for monthly summary of
inward and outward supplies), GSTR-4 (for composition dealers), and GSTR-9
(annual return).

2. *Frequency of Filing*: The frequency of filing GST returns depends on the

type of taxpayer and their turnover. It can be monthly, quarterly, or annually.

3. *Information Required*: GST returns typically require details of outward

supplies (sales), inward supplies (purchases), tax collected, tax paid, input tax
credit availed, and any other relevant information.

4. *Filing Process*: Businesses can file GST returns online through the GSTN
(Goods and Services Tax Network) portal. They need to log in, fill in the required
information in the specified format, and submit the returns.

5. *Late Filing and Penalties*: Late filing of GST returns can attract penalties and
interest. It's important for businesses to file returns on time to avoid such
penalties.

6. *Reconciliation*: Businesses need to reconcile the data provided in their GST

returns with their financial records to ensure accuracy and compliance.

16
7. *Compliance*: Compliance with GST return filing requirements is crucial for
businesses to maintain their GST registration and avoid legal implications.

Overall, GST returns play a vital role in the GST regime by enabling tax
authorities to track and verify the tax liabilities and compliance of taxpayers.

PURPOSE OF GST RETURNS

The purpose of GST returns is to provide a detailed account of a taxpayer's

transactions, including sales, purchases, tax collected, tax paid, and input tax
credit availed, to the tax authorities. These returns serve multiple purposes:

1. *Compliance*: GST returns help businesses comply with the legal requirement
of reporting their transactions to the tax authorities accurately and in a timely
manner.

2. *Tax Calculation*: They facilitate the calculation of the tax liability of a

taxpayer based on their sales and purchases during a specific period.

3. *Input Tax Credit (ITC) Reconciliation*: GST returns enable businesses to

reconcile the input tax credit claimed with the taxes paid on their purchases. This
ensures that businesses claim the correct amount of ITC and prevent any
discrepancies.

4. *Revenue Collection*: GST returns aid tax authorities in collecting taxes from
businesses efficiently by providing a transparent record of transactions.

17
5. *Data Analysis*: The data collected through GST returns allows tax authorities
to analyze trends, identify tax evasion, and implement policy changes to improve
the effectiveness of the GST system.

STRUCTURE OF GST RETURNS

The structure of GST returns typically includes sections for reporting various
types of transactions and tax-related information. The exact structure may vary
depending on the type of return, but generally, it includes:

- Details of outward supplies (sales) made during the reporting period, including
invoices issued.

- Details of inward supplies (purchases) on which reverse charge mechanism

applies.

- Summary of tax liability and tax paid, including GST collected and GST paid.

- Reconciliation of input tax credit claimed with the taxes paid on purchases.

- Any other relevant information required by the tax authorities.

The structure is designed to ensure that businesses provide comprehensive

information about their transactions, allowing tax authorities to verify compliance
and enforce tax laws effectively.

18
COMPARATIVE ANALYSIS OF GST RETURNS

A comparative analysis of GST involves examining how the Goods and Services
Tax system compares to the previous tax regime it replaced, as well as comparing
it with GST systems in other countries. Here's a brief comparative analysis:

1. *GST vs. Previous Tax Regime*:

- Simplification: GST replaced a complex and multi-layered tax structure with a

unified tax system, thereby simplifying tax compliance for businesses.

- Elimination of Cascading Effect: Unlike the previous tax regime, GST allows
businesses to claim input tax credit on taxes paid on their purchases, eliminating
the cascading effect of taxes.

- Streamlined Interstate Trade: GST has facilitated interstate trade by

eliminating multiple state taxes and introducing a uniform tax rate across states.

- Increased Compliance: The digital nature of GST filing has led to increased
compliance and transparency in tax reporting.

- Challenges: However, the implementation of GST faced initial challenges such

as technological issues, procedural complexities, and adaptation by businesses.

2. *Comparison with GST Systems in Other Countries*:

- Tax Rate: GST rates vary across countries, with some having a single rate
while others have multiple rates based on the type of goods and services.

- Thresholds: Threshold limits for GST registration differ, affecting the coverage
of small businesses under the GST regime.

- Compliance Requirements: Compliance procedures, including the frequency of

filing returns and the complexity of reporting, vary among countries.

19
 - Exemptions and Zero-rating: Some countries exempt certain goods and
services from GST, while others apply zero-rated taxes to them.

- Administration and Enforcement: The efficiency of tax administration and

enforcement mechanisms differs, impacting the effectiveness of GST systems in
curbing tax evasion and ensuring compliance.

Overall, while GST has brought significant reforms to India's tax system, there are
lessons to be learned from other countries' experiences in terms of tax rates,
thresholds, compliance procedures, and enforcement mechanisms. Continuous
evaluation and improvement of the GST system are essential to address challenges
and optimize its benefits for the economy.

20
Terminologies

 GST – The Goods and Services Tax, or GST, is an indirect tax law
applicable across India. It has replaced multiple indirect taxes such as
excise duty, services tax, value-added tax, octroi, entry tax, and luxury tax.

 Auditing is a part of the accounting world. It is an examination of

accounting and financial records that is undertaken independently.

 CGST, SGST, IGST, UGST.

 Comparison of GST-3B vs GSTR-2A.

 GSTR-3B with GSTR-1.

21
Objectives of study :
 Objective of studying GST return is to know the indepth knowledge about
GST, how to file GST return.
 Compare GST return invoices for auditing.
 Understanding various aspects of GST which help company at time of
auditing.

Scope of Study :

 Acquiring knowledge of GST and return.

 Getting importance of various tax slab in GST.
 Understanding comparision of GST return.
 Evaluting results with help of graphs.
 Understanding recursion of not filing return.

22
OBJECTIVES OF GST

 The elimination of other taxes – The introduction of the GST Act led to the
replacement of other indirect taxes. The major taxes are grouped into the
GST.

 Increases compatibility – The tax compliance is easier for MSME or small

scale businesses. In addition, the presence of a single tax makes the
process of filing a return easier.

 Increases transparency – The GST reduces the chances of corruption and

increases transparency. For example, in businesses there are reduced
chances of a false input tax credit.

 Reduction of price – The GST bill imposes taxes exclusively on the net
value-added part, eliminating the previous tax-on-tax system and reducing
the cost of commodities.

 Boost the country's revenue – A large tax-to-GDP ratio indicates increased

government revenues, indicating a healthy economy. In addition, a broader
tax base and greater tax compliance can lead to an increased government
income from GST operations.

 High efficiency and productivity – The GST in India intends to eliminate

logistical restrictions and the time-consuming filing process for the input
tax credit. Furthermore, by eliminating the entry tax, the productivity
levels of businesses are predicted to rise.

23
List of Goods and Service Tax Rates and Slab

5% Tax Slab

The tax slab of 5% is where the GST tax actually begins. The products which
attract a 5% GST Rate are skimmed milk powder, coffee, fish fillets, coal,
fertilizers, ayurvedic medicines, insulin, cashew nuts, agarbatti, Ethanol - Solid
biofuels among a few others. The GST rate in India for services in the 5% tax slab
includes smaller restaurants affiliated with transport services like railways and air
travel, standalone AC restaurants, non-AC restaurants, and restaurants that serve
alcohol.

12% GST Slab

The 12% slab includes items such as frozen meat products, butter, sausage, ghee,
pickles, fruit juices, namkeen, tooth powder, instant food mix, umbrella, medicine,
cell phones, man-made yarn, wooden frames for painting, photographs, Brass
Kerosene Pressure Stove, Art ware of iron, mirrors, etc.

18% GST Slab

The GST rate in India is structured in such a way, that the bulk of the items fall
under this category. Some of the main items included are flavored refined sugar,
cornflakes, pasta, pastries and cakes, detergents, washing and cleaning
preparations, mirror, glassware, safety glass, sheets, pumps, light fitting,
compressors, fans, chocolate, tractors, preserved vegetables, ice cream, televisions
(up to 68 cm). Some others include marble & granite, paints, scent sprays, hair
shavers, lithium-ion batteries, artificial fruits, hair curlers, hairdryers, stones used
in flooring, vacuum cleaners, sanitaryware, leather clothing, wristwatches,
cookers, stoves, cutlery, telescope, goggles, binoculars, oil powder, cocoa butter,
fat, detergent as well as artificial flower.

24
28% GST Slab

The 28% GST slab is the highest GST rate in India. It is mainly reserved for sin
goods as well as luxury items. The goods which are part of this slab are, pan
masala, dishwasher, weighing machine, paint, cement, sunscreen. Automobiles
and motorcycles along with hair clippers are also part of this slab which is also a
bone of contention as the auto industry is going through a downturn currently.

25
 CHAPTER-2 DESIGN OF THE STUDY

 TITLE OF THE STUDY

ABOUT GST:

FORM GSTR-1: Details regarding outward supply of goods

FORM GSTR-3B: Breakup of Eligible ITC and tax liability under CGST, SGST,
& IGST

 Tally prime

Creating company

1. Payment voucher
2. Receipt voucher
3. Journal entries
4. Ledger account

 HSN / SAC CODES

All the goods and services to be used in India GST are classified by an HSN code
(Harmonized System of Nomenclature) and by the SAC (Services accounting
codes) and will help to remove the hurdle/obstacle in the international trade.

26
 SOFTWARE USED

1. Microsoft Office
- Excel
- Word

 Microsoft Office:
 Excel - Excel is a widely used tool in auditing firms due to its
versatility and analytical capabilities. Here are some common ways
Excel is utilized in auditing:

 Data Analysis: Excel is used extensively for data analysis

during the audit process. Auditors can import large datasets
from accounting systems or other sources into Excel, and then
use various functions, formulas, and pivot tables to analyse and
summarize the data. This enables auditors to identify trends,
anomalies, and patterns that may indicate potential risks or
control weaknesses.

 Financial Statement Analysis: Auditors often use Excel to

perform financial statement analysis. They can create
spreadsheets with formulas and calculations to assess financial
ratios, compare actual results with budgeted or historical data,
perform variance analysis, and conduct trend analysis. Excel's
ability to organize and manipulate financial data makes it a
valuable tool for understanding an organization's financial
health.

27
  Audit Planning and Documentation: Excel is commonly
used for audit planning and documentation. Auditors can
create templates and spreadsheets to outline the audit
objectives, scope, and procedures. They can track the progress
of audit tasks, assign responsibilities, and document their
findings and conclusions. Excel also allows auditors to create
checklists and control matrices to ensure all necessary audit
procedures are performed and documented.

 Risk Assessment: Excel can be used to facilitate risk

assessment processes. Auditors can create risk matrices or
heat maps in Excel to visually represent and prioritize the
identified risks based on their likelihood and impact. These
tools help auditors gain a better understanding of the key risks
and focus their audit procedures accordingly.

 Reporting and Presentation: Excel is often used to prepare

audit reports and presentations. Auditors can create
professional-looking reports by utilizing Excel's formatting
options, charts, and graphs. They can summarize audit
findings, include supporting data and evidence, and present
the information in a clear and concise manner.

 Word - Microsoft Word is another commonly used tool in auditing

firms, primarily for documentation, report writing, and
communication purposes. Here are some specific use cases for Word
in auditing:

28
 Audit Documentation: Word is used extensively for creating
and organizing audit documentation. Auditors can draft
engagement letters, audit plans, risk assessment memos, and
other important audit-related documents. Word provides the
flexibility to structure and format these documents effectively,
including tables, headings, and bullet points.

 Work papers: Auditors use Word to create work papers,

which are detailed records of audit procedures performed,
evidence obtained, and conclusions reached. Work papers
serve as a reference for the audit team and provide evidence of
the work performed during the audit.

 Audit Reports: Word is widely used for writing audit reports.

Auditors can create professional and comprehensive reports
that summarize the audit findings, conclusions, and
recommendations. Word provides various formatting options,
such as headers, footers, page numbering, and styles, to
enhance the appearance and readability of the reports.
Auditors can also incorporate tables, graphs, and visuals to
present the information effectively.

 Internal Communications: Word is utilized for internal

communications within the auditing firm. Auditors can draft
and share memos, meeting minutes, and other internal
documents related to the audit engagement. Word allows for
collaborative editing, making it easy for multiple team
members to contribute, review, and provide feedback on the
documents.

 External Communications: Auditors often communicate

with external parties, such as clients, regulators, or other
stakeholders. Word is used for drafting formal letters,

29
 correspondence, and other communication materials. Auditors
can create customized templates for various types of
communication, ensuring consistency and professionalism in
their interactions.

 Documentation of Policies and Procedures: Word is

employed for creating and updating documentation related to
auditing policies, procedures, and guidelines within the
auditing firm. These documents provide a framework for
auditors to follow during engagements and help ensure
compliance with professional standards and regulatory
requirements.

 Review and Editing: Word is used for reviewing and editing

documents prepared by auditors or other team members. It
enables collaborative editing, with features like track changes,
comments, and version control. This allows for effective peer
reviews and ensures the accuracy and quality of audit

documents .

30
CHAPTER-3 DISCUSSION / WORK DESCRIPTION

 GST Meaning and definition

GST is known as the Goods and Services Tax. It is an indirect tax which has
replaced many indirect taxes in India such as the excise duty, VAT, services tax,
etc. The Goods and Service Tax Act was passed in the Parliament on 29th March
2017 and came into effect on 1st July 2017.

In other words, goods and services tax (GST) is levied on the supply of goods and
services. Goods and Services Tax Law in India is a comprehensive, multi-stage,
destination-based tax that is levied on every value addition. GST is a single
domestic indirect tax law for the entire country.

Before the Goods and Services Tax could be introduced, the structure of indirect
tax levy in India was as follows:

Under the GST regime, the tax is levied at every point of sale. In the case of intra-
state sales, Central GST and State GST are charged. All the inter-state sales are
chargeable to the Integrated GST.

Now, let us understand the definition of Goods and Service Tax, as mentioned
above, in detail.

1. What is GST in India?

GST is known as the Goods and Services Tax. It is an indirect tax which has
replaced many indirect taxes in India such as the excise duty, VAT, services tax,
etc. The Goods and Service Tax Act was passed in the Parliament on 29th March
2017 and came into effect on 1st July 2017.

31
In other words, Goods and Service Tax (GST) is levied on the supply of goods
and services. Goods and Services Tax Law in India is a comprehensive, multi-
stage, destination-based tax that is levied on every value addition. GST is a single
domestic indirect tax law for the entire country.

Before the Goods and Services Tax could be introduced, the structure of indirect
tax levy in India was as follows:

Under the GST regime, the tax is levied at every point of sale. In the case of intra-
state sales, Central GST and State GST are charged. All the inter-state sales are
chargeable to the Integrated GST.

 Multi-stage:

An item goes through multiple change-of-hands along its supply chain: Starting
from manufacture until the final sale to the consumer.

 Let us consider the following stages:

 Purchase of raw materials
 Production or manufacture
 Warehousing of finished goods
 Selling to wholesalers
 Sale of the product to the retailers
 Selling to the end consumers
 The Goods and Services Tax is levied on each of these stages making it a
multi-stage tax.

 The Journey of GST in India

The GST journey began in the year 2000 when a committee was set up to draft
law. It took 17 years from then for the Law to evolve. In 2017, the GST Bill was
passed in the loka Sabha and Rajya Sabha. On 1st July 2017, the GST Law came
into force.

32
  Advantages of GST

GST has mainly removed the cascading effect on the sale of goods and services.
Removal of the cascading effect has impacted the cost of goods. Since the GST
regime eliminates the tax on tax, the cost of goods decreases.

Also, GST is mainly technologically driven. All the activities like registration,
return filing, application for refund and response to notice needs to be done online
on the GST portal, which accelerates the processes.

 Advantages
1. Simplified Tax Structure: GST has replaced multiple indirect taxes with
a single tax, simplifying the tax structure.
2. Higher Tax Compliance Levels: GST has introduced a single cumulative
tax return that the taxpayer needs to file, elevating tax compliance and
reducing tax evasion.
3. Greater Revenue Collection: More people are filing tax returns,
complying with the GST requirements, and avoiding evasion of taxes,
resulting in increased tax revenue for various central and state government
agencies.
4. Increasingly Efficient Logistics: GST has moved goods and services
across states easier, reduced the overheads incurred by companies, and
improved overall logistics and operations.
5. Increased Transparency: GST is a transparent tax system that provides a
clear and comprehensive view of the taxes paid and collected, reducing
corruption within the tax administration and related agencies.

33
6. Easy Accessibility: GST returns can be filed anytime and from anywhere
using a web-enabled device like a smartphone, tablet, or PC, encouraging
higher compliance.
7. Convenience for Small Businesses: GST has simplified the tax structure
for small businesses, reducing the burden of adhering to multiple
compliances and simplifying the protocols for micro, small, and medium
enterprises (MSMEs).
8. Encouragement for Foreign Investments: The elimination of disparate
taxes and increased transparency has made India a highly-attractive
investment avenue for foreign investors, with the export of Indian
commodities surging while foreign companies are flocking to set up
operations here.
9. Digitization: GST has encouraged the Digitization of businesses,
increasing efficiency in operations and heightened transparency in
reporting.
10. Boost to the Economy: More taxes collected and a more efficient inter-
state supply chain have benefited the entire economy, especially the less-
developed states that can now benefit from the additional GST amount that
can be distributed across the country.

 Disadvantages of GST

1. Increased Costs
GST requires firms to upgrade their current accounting software to ERP or
GST-compliant software in order to keep their operations running.
However, firms should keep in mind that purchasing, installing, and
training staff to utilize GST-compliant software can be costly.
Furthermore, the expenses of conducting business have risen significantly
for both large and small enterprises, since they must now hire tax
professionals in order to become GST-compliant.

2. Increased Software Expenses

34
 Prior to the implementation of the GST regime, most Indian businesses
relied on basic ERP or accounting software to manage their day-to-day
operations. These software and solutions were developed in compliance
with the tax rules and structures in place at the time. Businesses are now
compelled to switch to more expensive GST-compliant software or
specialized GST software as a result of the implementation of GST. This
indicates that operating costs will rise as a result of software acquisitions
and employee training.

3. Increased Tax Burden on SMEs

One of the most significant downsides of GST is that it has increased tax
burdens for small and medium-sized firms. This is because, under the
previous tax structure, enterprises with annual sales of more than RS 1.5
crores were required to pay excise. However, under the new tax structure,
any company with a total yearly turnover of more than RS 20 lakh is
subject to taxation.
This tax system, however, includes a composition scheme for SMEs with a
revenue of less than RS. 1 crore. SMEs are simply required to pay 1% of
their annual revenue under this system. However, if a company decides to
take advantage of this composition benefit, it cannot claim the input tax
credit.

4. Difficult Migration to Online Filing System

Since the implementation of the new tax system, practically every part of
the tax has been handled online, from registration to filing tax returns.
With the advancement of modern technology, organizations are gradually
adopting digital solutions. However, such solutions for tiny enterprises
receive little attention. Although the government’s online system is
incredibly convenient for business owners, it still has a steep learning
curve that can be difficult for small enterprises.

5. Compliance Burden

35
 Companies must now register with GST in all states where they operate
under the new taxing regime. Businesses must issue GST-compliant
invoices, keep electronic records, and file returns as part of the registration
procedure. The expense of all of these services has significantly raised the
strain on the country’s small and medium-sized businesses. Furthermore,
numerous firms are finding it difficult to adjust to GST because all Indian
states’ infrastructure is not ready to embrace e-governance.

6. Loss in the real estate sector

The advent of the GST has had a significant impact on the real estate
industry. It has resulted in an 8% increase in real estate prices. This has
resulted in a 12% drop in property demand. However, it is possible that
this is a short-term trend that may not persist forever.

7. Standard Tax Rates and Multiple Rates of CESS

Instead of a simpler tax system, India’s GST Council implemented GST
with five standard rates. Many economists believe that this complicates
rather than simplifies the structure.
Given India’s many states, each had its own challenges with GST rates.
Each wants lower rates to be implemented for certain items produced. As a
result, the GST Council was forced to introduce numerous tax rates under
GST. Furthermore, GST was initially implemented with a tax rate as high
as 28%. Despite this, the GST Council has been steadily lowering rates,
and most items of daily use now fall into the 0% to 5% tax category.

8. Dual Control
GST is referred to as a single taxation system, but in reality, it is a dual tax
because both the state and the center will collect separate taxes on a single
sale and service transaction.

9. Hurried Implementation of GST

GST was implemented on July 1, 2017, in the midst of the fiscal year. This
made it difficult for firms to swiftly transition to a new tax framework.

36
 Following the prior regime’s tax laws for the first quarter of 2017 and
sticking to the newly implemented GST for the remaining quarters posed
compliance challenges.

10. Income Tax Credit Mismatch

As the tax guard changes, the first few occurrences of application will
result in large tax-paying at the outset. However, when the loop is
activated, they will only be allowed to use the tax input in the latter phases.
With such in place, there would be an ITC mismatch during the initial
application of GST Tax.

GST return

GST return is a document that will contain all the details of your sales,
purchases, tax collected on sales (output tax), and tax paid on purchases
(input tax). Once you file GST returns, you will need to pay the resulting
tax liability (money that you owe the government). All business owners
and dealers who have registered under the GST system must file GST
returns according to the nature of their business or transactions.

 Regular Businesses
 Businesses registered under the Composition Scheme.
 Other types of business owners and dealers.
 Amendments.
 Auto-drafted Returns.
 Tax Notice.

Different types of GST Returns

37
GSTR-1 Returns of outward supplies The due date is 11th of
undertaken by a typical registered tax next month.
payer under GST. Previously, the due
date for GST return
filing was 10th of the
next month.

GSTR-2 Returns of inward supply of goods 15th of next month

and services as agreed by the
recipient of the goods and services.

GSTR-3 A monthly GST return filing of 20th of next month

inward and outward supplies of
goods and services.

GSTR-3B Returns of outward supplies along Previously it was the

with input tax credit is declared and 20th of the next month
payment of tax is affected by the for all taxpayers. Now
taxpayer. it’s from the month of
January 2020
onwards.

GSTR-4 GST filing for taxpayers registered The due date is the
under the composition scheme under 30th of the month
section 10 of the CGST Act succeeding a financial
(Supplier of goods) and CGST year.
(Rate).

38
GSTR-5 Return for a non-resident foreign 20th of next month.
taxable person.

GSTR-6 Returns that an Input Service

Distributer files every calendar
month. It has all the information of
the invoices on which credit has been 13th of next month.
received and are issued by an ISD.

GSTR-7 A monthly return that has to be filed 10th of next month.

by the deductors who are required to
deduct TDS under GST.

GSTR-8 Returns for the electronic commerce

operator who is required to deduct
Tax Collected at Source under GST.

GSTR-9 Annual return for a normal taxpayer. 31st December of next

financial year.

39
GSTR-9A Annual return to be filed by the 31st December of next
registered taxpayer under the financial year.
composition levy anytime during the
year.

GSTR-9C Certified reconciliation statement. 31st December of next

financial year.

GSTR-10 A final return that needs to be filed To bee filed within 3

to make sure the taxpayer pays off months of cancellation
any liability outstanding. of order.

Comparison of GSTR-3B vs GSTR-2A

Form GSTR – 3B is a monthly summary return filed by the taxpayer by

the 20th of the next month or 22nd/24th of month following the quarter.
Taxpayers are allowed to take the input tax credit (ITC) based on the
details declared by the taxpayer

Form GSTR – 2A is an auto-populated form generated in the recipient’s

login, covering all the outward supplies (Form GSTR – 1) declared by his
suppliers.

40
When the supplier files GSTR – 1 in any particular month disclosing his
sales, the corresponding details are captured in GSTR-2B and GSTR – 2A
of the recipient. While the filing of Form GSTR – 2 has been kept in
abeyance, it’s still important under the GST framework for the taxpayers
to reconcile the ITC claimed in Form GSTR – 3B and Form GSTR –
2A.GSTR – 3B is a summary return. Hence, the amount 30 of ITC
available as disclosed in Table 4(a) must match with tax details disclosed
in Form GSTR-2B regularly, along with GSTR – 2A.

GSTR-3B vs GSTR-2A is an important exercise that businesses must not

miss out on. It helps businesses claim the full Input tax credit (ITC) and
also reverse any excess ITC claimed. In turn, the reconciliation before
filing GSTR-3B will help avoid any potential demand notices from the tax
authorities.

Importance for GSTR-3B vs GSTR-2A

GST authorities have issued notices to a large number of taxpayers asking

them to reconcile the ITC claimed in a selfdeclared summary return Form
GSTR – 3B with the autogenerated Form GSTR-2B and Form GSTR –
2A. Such notices are issued in Form GST ASMT – 10. The taxpayer
would be required to reply to such notices or pay the differential amount.

Tax evaders claiming ITC on the basis of fake invoices have also been
penalised in the past.

Reconciliation ensures that credit is being claimed for the tax which has
been actually paid to the supplier.

Ensures that no invoices have been missed/recorded more than once, etc.

41
 In case the supplier has not recorded the outward supplies in Form GSTR
– 1, communication can be sent out to the supplier to ensure that the
discrepancies are corrected.

Errors committed while reporting details in GSTR-1 by suppliers or

GSTR-3B by recipients can be rectified.

Reasons for non-reconciliation of GSTR-2A vs 3B

The details disclosed in Form GSTR – 2A and Form GSTR – 3B may not
reconcile on account of the following reasons:

The credit of IGST claimed on the import of goods  IGST Credit on the
import of services
The credit of GST paid on reverse charge mechanism, etc.
Transitional credit claimed in TRAN – I and TRAN – II.
ITC for goods and services received in FY 2020-21 but availed in FY
2021-22

Advantages of GSTR-3B vs 2A report

Download GSTR-2A anytime across months from the GST portal to start
comparing with GSTR-3B data. Verify GST login once using OTP, and
continue to easily update data in a click, anytime and anywhere.

Check the difference for every field such as B2B other than reverse
charge to compare ITC between GSTR-2A and GSTR3B.

ITC comparison at PAN and GSTIN level is available.

Know the differences instantly at a monthly level or at a quarterly level, to
take further action.

42
Auditing of GSTR-3B with GSTR-1

Comparing GSTR-3B with GSTR-1 is a much-needed process to be

undertaken by every taxpayer in order to ensure that there are no variations
or gaps, which could, in turn, lead to a demand notice from the tax
authorities or unwanted issues that may arise and hinder the accurate filing
of the annual returns.

GSTR-3B is a monthly summary return filed by a taxpayer by the 20th of

the next month or 22nd/24th of month following a quarter. GSTR3B
discloses supplies made during the month along with GST to be paid, input
tax credit claimed, purchases on which reverse charge is applicable, etc.,
and also makes a provision for the payment of taxes, if any, for the
relevant month.

GSTR-1 is a monthly or quarterly return filed by taxpayers to disclose

details of their outward supplies for the month – along with their tax
liability. Here, invoice-wise details are to be uploaded so that the
Government can keep a check on every transaction. This forms the basis
for the recipient of supplies to accept the same and take the eligible input
tax credit.

Importance for GSTR-3B vs GSTR-1

Time and again, GST authorities have issued show cause notices to a large
number of taxpayers asking them to reconcile the total of sales disclosed in
the GSTR-3B summary return and the detailed GSTR-1 return.

Reconciliation ensures that no invoice is omitted or recorded more than

once in either of the returns.

43
 This ensures a taxpayer to arrive at an accurate amount of output tax
payable on the sales made in a period.
From 1st January 2021, taxpayers must ensure that supplies declared in
GSTR-1 must match the summary total of supplies declared in GSTR-3B.
Otherwise, the GSTIN may be suspended.

Any late declaration of GST liability can also attract interest.

Reconciliation would also help the Government to allocate the right share
of tax revenue to the concerned states. This reconciliation is specifically
useful to identify any errors that have been made when entering the details
of integrated taxes while filing GSTR-3B.

GSTR-1 forms the base for the recipients of supplies to claim input tax
credit while filing their returns. Hence, a timely and accurate declaration in
both GSTR-1 and GSTR-3B is necessary, to avoid hassles with recipients
at a later date, and also ensure that only genuine input tax credit can be
claimed.

Reconciliation at the time of filing of Annual return

At the time of filing an Annual return in Form GSTR – 9, a reconciliation

of outward supplies is a must to ensure that the details disclosed match the
details disclosed in GSTR-1 and GSTR-3B, across all months. Details of
tax paid during the year need to be mentioned as well and this must tally
with the total taxes disclosed and paid in GSTR-3B.

Therefore, it is important that GSTR-1 and GSTR-3B match as the return-

filing system is integrated and a mismatch between the same could result
in improper disclosure in the annual return. GST Return and Analysis

Reasons for mismatches in GSTR-3B vs GSTR-1

44
Most commonly, the details disclosed in Form GSTR – 3B and GSTR
– 1 may not reconcile on account of the following reasons:

Reporting of supplies under the wrong table in GSTR-3B, but correctly

reporting the same when declaring it invoice-wise in GSTR-1. For
example: Reporting zero-rated sales correctly in Table 6A of GSTR-1, but
incorrectly reporting it under Table 3.1(a) in GSTR-3B.

Issue of an invoice in a particular month, and issue of a debit or credit

note at a later date could lead to mismatches.

Inter-state supplies made to unregistered persons omitted in GSTR-3B but

declared in GSTR-1.

Value of supplies correctly shown but tax paid under the wrong head. For
example, IGST instead of CGST & SGST or viceversa.

Supplies that may have been amended after GSTR-1 has been filed. In
other words, any change of tax liability between the time of filing GSTR-1
and GSTR-3B.

The time difference in reporting of invoices in GSTR-1 and GSTR-3B.

Advantages of GSTR-3B vs GSTR-1 Tax Comparison

Report

Download GSTR-1 and GSTR-3B anytime across months and upload

sales ledgers to start comparing data. Verify GST login once using OTP,
and continue to easily update data in a click, anytime and anywhere.

Check the difference for every field such as outward tax, outward taxable
value, supplies under RCM in both returns, etc.

45
 Data comparison at a PAN and GSTIN level is available.

Know the differences instantly at a monthly, quarterly, or annual level, to

take further action.

Repercussion on not filling ITR

The ITR filing deadline has been extended twice, first from the usual July 31,
2021, to September 30, and then eventually, to December 31. Note that the last
date for filing belated ITR for FY 2020-2021 i.e. AY 2021-2022 is March 31,
2022. For the uninitiated, AY i.e. Assessment Year is the year post financial year
(FY) where your income is assessed and evaluated.

While the due date i.e. December 31 indicates the day seller can file income tax
returns without paying any penalty charges or foregoing any benefits, the last date
i.e. March 31 is the final day seller can file ITR with the IT department, after
paying the relevant fine and fees. In the event seller miss out on filing your returns
today, seller will have to pay a maximum fine of Rs 5,000, a substantial reduction
from the earlier levy of Rs 10,000. This is applicable in case income is above Rs
5,00,000. If seller/individual income ranges up to Rs 5,00,000, seller/individual
will only be required to pay Rs 1,000 as a fine for 44 filing ITR after December
31. But, if seller/individual annual income does not fall in the taxable category,
seller/individual will not be charged any penalties.

The midnight of 31st December is the due date only for individual taxpayers
whose accounts are not required to be audited.

46
A seller can still file your returns under ‘belated returns’, under section 139 (4) of
the Income Tax Act, 1961. Here is a list of financial implications you will have to
face :

Payment of penal interest on unpaid tax liability, if any. This amount, payable by
assesses will increase proportionately to the delay. seller/individual will also have
to forego any interest on refund of excess taxes seller/individual have paid for the
delay period. Seller/individual will not be able to set off losses against your
current year's income if v fail to file the ITR before midnight today. Significantly,
seller/individual will not be able to carry forward any losses despite timely
payment of all past taxes. This includes losses from business and profession,
short-term or long-term capital losses or any other losses. The only exception here
is the loss from house property up to an amount of Rs.2 lakh.

For carrying forward the losses, it is compulsory that seller/individual file all taxes
before the due date. Notably, taxpayers can carry forward their short and long-
term capital losses to a maximum of 8 assessment years immediately after the AY
in which the loss was evaluated. And in the situation seller/individual don't file
income tax returns at all, seller/individual will be subjected to a penalty that can
range anywhere between 50-200 percent of the assessed tax. In addition, there is
also a provision of prosecution i.e. rigorous imprisonment of up to 7 years.

47
Graphical Representation

48
Graph showing trends in GST colletion in Rs.crore

49
50
Limitations

 In the auditing of GST return extensive use of paper work is involved.

 There is no specified format to record data entries.

 It takes lot of time to record each entry in the excel format.

 Traders does not follow scheduled date to file return which increases work
of filling penalties.

 Businesses does not record all transaction in GST return to save tax.

 Because of heavy traffic on website it takes lot of time and efforts to

download file from government portal.

51
  FORM GSTR-2B: Details regarding availability or non-
availability of input tax credit (ITC)

GSTR-2B is a new static month-wise auto-drafted statement for regular taxpayers

(whether or not opted into the QRMP scheme) introduced on the GST portal. The
statement was launched from the August 2020 tax period onwards.

 Introduction to GSTR-2B:

GSTR-2B provides eligible and ineligible Input Tax Credit (ITC) for each month,
similar to GSTR-2B but remains constant or unchanged for a period. In other
words, whenever a GSTR-2B for a month is accessed on the GST portal, the data
in it remains the same without being changed for subsequent changes by their
suppliers in later months.

GSTR-2B is available to all normal, SEZ and casual taxpayers. Every recipient
can generate it on the basis of the GSTR-1, GSTR-5 and GSTR-6 furnished by
their suppliers.

The statement will clearly show document-wise details of ITC eligibility. ITC
information will be covered from the filing date of GSTR-1 for the preceding
month (M-1) up to the filing date of GSTR-1 for the current month (M).

For instance, GSTR-2B generated for July 2023 will contain documents filed by
their suppliers from 12 a.m. on 12th July 2023 up to 11:59 p.m. on 11th August
2023. The statement for July 2023 will be generated on 12th August 2023.

 Importance and benefits of GSTR-2B

The data in GSTR-2B is reported in a manner that allows taxpayers to

conveniently reconcile ITC with their own books of accounts and records. It will
help them in easier identification of documents to ensure the following:

The input tax credit is not availed twice against a particular document.

The tax credit is reversed as per the GST law in their GSTR-3B, wherever
required.

52
GST is correctly paid on a reverse charge basis for the applicable documents,
including import of services.

The statement indicates the respective tables or columns of GSTR-3B under

which the input tax credit of an invoice/debit note must be taken.

 When GSTR-2B was made available?

GSTR-2B has been made available from August 2020 onwards. Until January
2021, it could be generated by recipient taxpayers once a month on the 12th of the
month next to the tax period.
For instance, GSTR 2B for August 2020 can be accessed on 12th September 2020.

From January 2021 onwards, taxpayers can generate the GSTR-2B on or after the
14th of every month for a tax period. For instance, GSTR 2B for October 2021
can be accessed on 14th November 2021.

 How to access GSTR-2B on the GST portal?

The following are the steps to access GSTR 2B, available from 12th August
2020:

Step 1: Log in to the GST Portal A taxpayer must use his/her credentials to log
in.

Step 2: Navigate to the ‘Returns Dashboard’.

53
Step 3: Select the relevant tax period. Select the month and financial year.

54
Step 4: On the ‘GSTR-2B’ tile, you may either click on ‘View’ or ‘Download’, as
per the need.

(a) Download:

If the total number of documents in all tables of GSTR-2B exceeds 1,000, you can
either use the advanced search option or download the document information in
excel/JSON format from the GSTR-2B download page. Click the download
button to go to the GSTR-2B download page.

(b) View:
If the number of line items is less than 1,000, then you may use the ‘View’ option.

Step 5: Take suitable action on the GSTR-2B based on the option chosen in Step

(a) Intend to download:

If you plan to download, click on the button known as “Generate JSON File to
Download” to check out the statement on Offline Matching Tool. Alternatively,
click on the “Generate Excel file to download” button to obtain the data in the
excel file on your system.

55
(b) Intend to view:
GSTR-2B screen appears and has two tabs called Summary and All Tables.

The Summary tab is further classified into two parts:

Part A (ITC Available):

ITC summary value of credits available as on its generation date and is divided
into credit that can be availed and credit that must be reversed (Table 3)

Part B (ITC not Available):

ITC summary value of credits not available and is classified into ITC unavailable
and ITC reversal (Table 4)

You can fetch the documents by clicking on the hyperlinked text of B2B –
Invoices, B2B – Debit notes, B2B – Invoices (Amendment) and B2B – Debit
notes (Amendment).

56
The All Tables tab will have the ITC information that can be sorted as per the
tables of the GSTR-2B form such as B2B, B2BA, B2B CDNR, B2B CDNRA,
ISD, ISDA, IMPG and IMPGSEZ.

Further, ITC appears document-wise (document details) with filters to sort data as
per your need. Further, you can filter data supplier-wise as well.

 Contents and features of GSTR-2B

57
The input tax credit on purchases from any regular taxpayers and non-resident
taxable persons will be available in GSTR-2B. Further, the input tax credit
distributed by the input service distributor shall also be available.

 The contents of GSTR-2B can be summarised as follows:

 Summary statement showing ‘ITC available’ and ‘ITC not available’

for every section.
 Advisory for every section clarifies the kind of action that taxpayers
must take.
 Document-wise details such as invoices, credit notes, debit notes, etc.
to view and download along with amendments.
 Cut-off dates and advisory for generating and using GSTR-2B.
 Import of goods and import from SEZ units/developers (available from
GSTR 2B of August 2020 onwards).

 The form GSTR-2B is classified into two categories:

 ITC is available: PART-A of ITC Available contains details of inward

supplies, credit-debit notes (CDN), including amendments, and import
of goods divided into four parts- ITC for supplies from registered
persons, ITC from ISD, ITC towards inward supplies on reverse charge
and import of goods. Whereas, PART-B is ITC Reversal has one part
called ‘Others’ that contains details of credit notes and Amendments.
 ITC is not available: PART-A of ITC Not Available has purchase
invoice or CDN details, including any amendments, divided into three
parts- All other ITC for supplies from registered persons, ITC from
ISD and ITC towards inward supplies on reverse charge. Whereas,
PART-B has CDN details and amendments under the ‘Others’ heading.

58
Note: Amendment tables in GSTR-2B give only the differential tax amount
(Amended – Original), also referred to as the delta value. But the document details
will display revised details with reference to the original document.

The input tax credit will be marked as ‘not available’ in the following scenarios:

Where the time limit to avail input tax credit on an invoice or debit note has
expired under section 16(4) of the CGST Act (earlier of 30th September of the
year following the financial year or date of filing annual returns).

The state of the supplier and place of supply is the same, whereas the recipient is
located in another state.

When the purchaser is not eligible for Input Tax Credit towards an invoice or
debit note is issued for the supply of goods or services, or both.

 The notable features of GSTR-2B are as follows:

 To view and download the summary statement as a PDF file.

 Can obtain section-wise details or complete download of ITC instantly.
 Availability of section-wise advisory.
 Allows text search for all the generated records.
 Option to view, filter and sort data, as required.
 Hide/view the columns as per the user’s convenience.
 Where the file contains more than 1,000 records, options for a full
download of GSTR-2B and an advanced search is available.
 An email or an SMS will be sent to the taxpayer informing them about
the generation of GSTR 2B.

59
 The detailed format of GSTR-2B

60
Comparison of GSTR-2A with GSTR-2B
An Invoice Furnishing Facility (IFF) has been introduced for quarterly GSTR-1
filers to upload their supply invoices so that the recipient of supplies can
continuously avail input tax credit.

 GSTR-2B vs GSTR-3B: Matching Purchase register with

GSTR-2B
 It is recommended that taxpayers reconcile the data provided in GSTR-
2B with their own records and books of accounts. Taxpayers must make
certain that
 Input tax credit cannot be taken twice for the same supply.
 Credit is reversed in GSTR-3B in accordance with the GST Act and
Rules.
 Tax is charged on a reverse charge basis and paid to the government.
 Tax credit is being availed for the tax which has been actually paid to
the supplier.
 The purchase invoices against which tax credit is going to be claimed in
GSTR-3B is found in the GSTR-2B in compliance with Section 16 of
the CGST Act.
 Until 31st December 2021, taxpayers could have arrived at the
provisional amount of tax credit for GSTR-3B which is 5% of the
available tax credit as per GSTR-2B, as per CGST Rule 36(4). From 1st
January 2022, it is no longer available due to the amendment made to
CGST Rule 36(4) vide the Central Tax notification no. 40/2021 dated
29th December 2021 and the Central Tax notification no. 39/2021 dated
21st December 2021.
 No excess tax credit is claimed, otherwise it must be paid back later on
with an interest of 24% per annum.
 ITC belonging to a particular financial year towards purchase invoices
or debit notes raised in that financial year must be availed before a
deadline under the GST law. It is earlier of the due date of filing GSTR-

61
 3B for September of the year following that financial year or GST
annual return filing date.
 No major mismatches exist between GSTR-2B and GSTR-3B that can
lead to the cancellation of GST registration.
 Matching GSTR-2B with purchase books is more important than
matching with the GSTR-3B. It is because, from late 2020 onwards,
GSTR-3B is being auto-populated with the values from GSTR-1 and
GSTR-2B forms for the corresponding tax period. Hence, there are
lesser chances for any mismatches.
 Once the values are taken from GSTR-2B, the values from GSTR-2A
need not be taken. The GST portal provides an option for taxpayers to
match their purchase register with the GSTR-2B form known as the. It
is critical that you add data and import it into the tool in the same
format as given on the GST portal. Otherwise, the tool will produce an
error, and you will be unable to continue matching GSTR-2B records
with the purchase register.

 Matching of entries between the two data must be based on the

following parameters.

 GSTIN
 Document type
 Document number
 Document date
 Total taxable value
 Total tax amount should total up to the sum of IGST, CGST, SGST
and CESS, if any
 Tax amount head wise
 Further, the matching may result in documents missing in either of the
data. If there are invoices or debit notes missing in GSTR-2B when
compared to the purchase register, the taxpayer must inform his
suppliers about the same and get the document uploaded in the next
GSTR-1 return they are filing. The reconciliation between GSTR-2B

62
 and the purchase register must be carried out more frequently and
suitably from the 14th of the month subsequent to the tax period.

 A few of the reasons for mismatches between GSTR-2B and purchase

books can be as follows.

 Period of reporting the invoices by the supplier is different from the

period of accounting in books by the buyer.
 Subsequent issue of debit or credit notes by supplier gone unaccounted
for by the buyer.
 Amendments to filed GSTR-1 in subsequent period’s GSTR-1 by the
suppliers. For instance, differences in sales details between the books of
accounts and GSTR-1 is auto-populated from the e-invoicing system.
Thus, the supplier amends returns later on.
 GSTR-2B provides eligible and ineligible Input Tax Credit (ITC) for
each month, similar to GSTR-2A but remains constant or unchanged
for a period. In other words, whenever a GSTR-2B for a month is
accessed on the GST portal, the data in it remains the same without
being changed for subsequent changes by their suppliers in later
months.

 GSTR-2B is available to all normal, SEZ and casual taxpayers. Every

recipient can generate it on the basis of the GSTR-1, GSTR-5 and
GSTR-6 furnished by their suppliers.
 The statement will clearly show document-wise details of ITC
eligibility. ITC information will be covered from the filing date of
GSTR-1 for the preceding month (M-1) up to the filing date of GSTR-1
for the current month (M).
 For instance, GSTR-2B generated for July 2023 will contain documents
filed by their suppliers from 12 a.m. on 12th July 2023 up to 11:59 p.m.
on 11th August 2023. The statement for July 2023 will be generated on
12th August 2023.

63
 Importance and benefits of GSTR-2B

 The data in GSTR-2B is reported in a manner that allows taxpayers to

conveniently reconcile ITC with their own books of accounts and
records. It will help them in easier identification of documents to ensure
the following:
 The input tax credit is not availed twice against a particular document.
 The tax credit is reversed as per the GST law in their GSTR-3B,
wherever required.
 GST is correctly paid on a reverse charge basis for the applicable
documents, including import of services.
 The statement indicates the respective tables or columns of GSTR-3B
under which the input tax credit of an invoice/debit note must be taken.
 Get hyper-automation for error-free GST filings

 When GSTR-2B was made available?

 GSTR-2B has been made available from August 2020 onwards. Until January
2021, it could be generated by recipient taxpayers once a month on the 12th of
the month next to the tax period.
For instance, GSTR 2B for August 2020 can be accessed on 12th September
2020.
 From January 2021 onwards, taxpayers can generate the GSTR-2B on or after
the 14th of every month for a tax period. For instance, GSTR 2B for October
2021 can be accessed on 14th November 2021.
 The timelines for the generation of GSTR-2B can be checked out on the
government portal under the ‘View Advisory’ tab.

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  How to access GSTR-2B on the GST portal?

The following are the steps to access GSTR 2B, available from 12th August 2020:

Step 1: Log in to the GST portal. A taxpayer must use his/her credentials to log in.

Step 2: Navigate to the ‘Returns Dashboard’.

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Step 3: Select the relevant tax period. Select the month and financial year.

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(a) Download:
If the total number of documents in all tables of GSTR-2B exceeds 1,000, you can
either use the advanced search option or download the document information in
excel/JSON format from the GSTR-2B download page. Click the download
button to go to the GSTR-2B download page.

(b) View:
If the number of line items is less than 1,000, then you may use the ‘View’ option.

Step 5: Take suitable action on the GSTR-2B based on the option chosen in Step
4.

(a) Intend to download:

If you plan to download, click on the button known as “Generate JSON File to
Download” to check out the statement on Offline Matching Tool. Alternatively,
click on the “Generate Excel file to download” button to obtain the data in the
excel file on your system.

(b) Intend to view:

GSTR-2B screen appears and has two tabs called Summary and All Tables.

The Summary tab is further classified into two parts:

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Part A (ITC Available):

ITC summary value of credits available as on its generation date and is divided
into credit that can be availed and credit that must be reversed (Table 3)

ITC summary value of credits not available and is classified into ITC unavailable
and ITC reversal (Table

You can fetch the documents by clicking on the hyperlinked text of B2B –
Invoices, B2B – Debit notes, B2B – Invoices (Amendment) and B2B – Debit
notes (Amendment)

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The All Tables tab will have the ITC information that can be sorted as per the
tables of the GSTR-2B form such as B2B, B2BA, B2B CDNR, B2B CDNRA,
ISD, ISDA, IMPG and IMPGSEZ.

Further, ITC appears document-wise (document details) with filters to sort data as
per your need. Further, you can filter data supplier-wise as well.

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Note: For Import of goods from overseas on the bill of entry – IMPG table, only
document details are available and no supplier wise details are available.

 The contents of GSTR-2B can be summarised as follows:

 Summary statement showing ‘ITC available’ and ‘ITC not available’ for

every section.

 Advisory for every section clarifies the kind of action that taxpayers must

take.

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  Document-wise details such as invoices, credit notes, debit note etc. to

view and download along with amendments.

 Cut-off dates and advisory for generating and using GSTR-2B.

 Import of goods and import from SEZ units/developers (available from

GSTR 2B of August 2020 onwards).

 TALLY PRIME

Tally Prime is a complete business management software for small and medium
business. Tally Prime helps you manage accounting, inventory, banking, taxation,
banking, payroll and much more to get rid of complexities, and in turn, focus on
business growth.

It enables users to calculate monetary quantities, accountancy, tax, and GST

(Goods and Services Tax) amounts, as well as manage commercial transactions
effectively and efficiently. The data you store in Tally can be accessed as needed
and managed in an efficient way at any time

Tally is very cheap compared to other accounting and ERP software available in
the market. This makes it more affordable for small businesses and as a result, it is
widely used.

 Voucher Entries

A voucher is a document that contains details of a financial transaction and is

required for recording the same into the books of accounts. For every transaction,
you can use the appropriate Tally voucher to enter the details into the ledgers and
update the financial position of the company.

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 1. How to Pass Payment Vouchers?

Payment voucher is used to account all the payments made by the company by
way of Cash/Bank. Payment voucher can be passed using Single Entry or Double
Entry mode by configuring the setting Use Single Entry mode for
Pym/Rapt/Contra in F12 configuration.

1. Press AlT+G (Go to) > Create Voucher > press F5 (Payment).
Alternatively, Gateway of Tally > Vouchers >
press F5 (Payment).

2. Press F2 (Date) to change the transaction date, if needed.

When you press F2 to change the date, the date shown is for the
subsequent day of the current date. This is done to avoid manual
entry of date for the next day as the immediate next day is the most
common business day. You can however enter any date, even a
date before the current date.

3. In the Account field, select the Cash or Bank ledger.

When you create a Company in Tally Prime, the system creates two
ledgers by default – Cash and Profit & Loss A/c.

4. Provide the payment details.

a. Under Particulars, select expense ledger for which you are making
this payment.
As always, press Alt+C to create a ledger under Indirect
Expenses, on the fly, if an expense ledger does not exist.

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 b. Amount: Enter the payment amount.

5. Provide Narration, if any, and accept the voucher creation screen.

As always, press Ctrl+A to save.

2. How to Pass Receipt Voucher?

A receipt voucher is a physically composed receipt for services or products sold.

This is regularly utilized instead of a printable receipt. At the point when an
individual makes a money installment to an organization, he typically gets a
transcribed receipt as confirmation of payment.

Go to Gateway of Tally > Accounting Vouchers.

● Select F6: Receipt from the button bar or press F6.

For example, if your company receives money from a customer for an earlier
transaction say sales, and the same is passed through a Receipt Voucher:

● Credit the customer account and debit the Cash account, if you receive
cash or

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 ● Debit the Bank account where you need to deposit the money, if you
receive Cheques.

The entry in double-entry mode is displayed as shown:

Special Keys for Voucher Narration Field

● ALT+R: Recalls the Last narration saved for the first ledger in the
voucher, irrespective of the voucher type.

● CTRL+R: Recalls the Last narration saved for a specific voucher type,
irrespective of the ledger.

 Journal Entries

 A journal is a concise record of all transactions a business conducts; journal

entries detail how transactions affect accounts and balances.

 All financial reporting is based on the data contained in journal entries, and there
are various types to meet business needs.

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 Adjusting journal entries, for example, are used to accrue or defer revenue and
expenses, change or correct previous entries or estimate non-cash transactions,
like allowances for debt that has been written off.

Debits add to expense and asset accounts and subtract from liability, revenue and
equity balances, while credits subtract from expense and asset balances and add
to liability, revenue and equity accounts.

 What Is the Purpose of a Journal Entry?

The purpose of a journal entry is too physically or digitally record every business
transaction properly and accurately. If a transaction affects multiple accounts, the
journal entry will detail that information as well.

6 Types of Journal Entries:

1. Opening entries:
These entries carry over the ending balance from the previous accounting
period as the beginning balance for the current accounting period

2. Transfer entries:
Transfer entries move, or allocate, an expense or income from one account
to another.

3. Closing entries:
These entries mark the end of an accounting period at a balance that can
then be transferred from a temporary account to a permanent one, or from
one accounting period to the next.

4. Adjusting entries:
Adjusting entries are entries that record changes to accounts that are not
otherwise accounted for in the journal, in compliance with the accrual
method of accounting.

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 5. Compound entries:
These entries record more than one account to be debited or more than one
account to be credited. The rule of journal entry requires the total of debits
and credits to be equal, but the number of credits and debits do not have to
be equal.

6. Reversing entries:
Reversing entries are made at the beginning of a new accounting period
and serve to reverse, or undo, an adjusting entry made at the end of the
previous accounting period.

 INCOME TAX BASICS

Income tax is a tax charged on the annual income of an individual or business

earned in a financial year. The Income Tax system in India is governed by The
Income Tax Act, 1961, which lays out the rules and regulations for income tax
calculation, assessment, and collection.

What are the 5 types of income tax?

 Income from salary.

 Income from house property.

 Income from profits and gains from business or profession.

 Income from capital gains.

 Income from other sources.

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Defining the ‘Previous year’

Previous year or the financial year or your tax year is the 12-month period that
begins on 1st April and ends on the 31st March of the next year. No matter when
you start your job, your tax year closes on 31st March and a new tax year starts on
1st April. So, it is important to plan your taxes for each financial year.

Defining the ‘Assessment Year’

It is a term you’ll often hear in relation to tax filing. It is the financial year after
the previous year in which you will ‘assess’ and file your return for the previous
year. So, assessment year is 2019-20 for the previous year 2018-19. Assessment
year is the year in which you will file your return for the previous year. For
instance, if you start your job on 1 January 2023, your tax year closes on 31
March 2023. 2022-23 is your previous year and your AY is 2023-24.

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78
 CHAPTER-4 LEARNING OUTCOMES

FILING GSTR 1

GSTR-1 is a monthly/quarterly return that summarizes all sales (outward supplies)

of a taxpayer. The due date to file Form GSTR-1 for a given tax period is 11th day
of the succeeding month in case of taxpayers filing it monthly and 13th day of
month succeeding the end of every quarter in case of taxpayers filing quarterly or
such other dates as may be extended by Government through notification.

Basics of Form GSTR-2A and Form GSTR-2B

Form GSTR-2A-

Form GSTR-2A is a system-generated (auto-populated) return reflecting inward

supplies (purchase-related transactions).

Form GSTR-2A gets auto-generated based on the details/ information furnished

by supplier/ seller/ counterparty vide following returns-

Form GSTR-1 – return to be filed by a normal registered person.

Form GSTR-5 – return to be filed by a non-resident.

Form GSTR-6 – return to be filed by an input service distributor.

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Form GSTR-7 – return to be filed by tax deductor.

Form GSTR-8 – return to be filed by an e-commerce operator liable to collect the

tax.

It also covers the details of import of goods as well as an inward supply of goods
from SEZ units/ developers.

Form GSTR-2B-

Form GSTR-2B is a system-generated (auto-populated) statement reflecting input

tax credit details.

The statement gets auto-generated on the 12th of the succeeding month.

The details, in Form GSTR-2B, are auto-populated on the basis of the following
returns furnished by the suppliers/ seller-

Form GSTR-1;

Form GSTR-5;

Form GSTR-6; and

Import data as received from ICEGATE.

This system has been introduced

for the systematic classification of
HSN / SAC CODES goods all over the world. HSN code
is a 6-digit uniform code that
classifies 5000+ products and is
accepted worldwide.

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 TALLY
PRIME

Tally Prime is a complete business management software for small and medium
business. Tally Prime helps you manage accounting, inventory, banking, taxation,
banking, payroll and much more to get rid of complexities, and in turn, focus on
business growth.

Payment Voucher
Receipt Voucher
Journal Entries
Tally Prime is a one-stop business management software that caters to all your
business requirements - from accounting and invoicing to inventory management,
insightful business reports, and cash flow management, thereby improving
business efficiency.

introduced or the systematic classification of goods all over the world. HSN code is a
6-digit uniform code that classifies 5000+ products and is ace

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 CONCLUSION

I did my internship at O.P.JAYASEELAN & Co. chartered accountant firm.

During these 18 days, I had the chance to put into practice the knowledge I had
acquired during BCOM classes. This internship enabled me to discover the world
of communications and business in greater detail. The assignments I was given
enabled me to better define the skills I'd like to develop for the rest of my career,
such as Community management, IT filling and GST Filling.
This experience also opened my eyes to the importance of being a Chartered
Accountant in the development of a providing service to people. I always feel
gratitude towards O.P.JAYASEELAN SIR for providing this wonderful
opportunity.

6-digit uniform code that classifies 5000+ products and is accepted worldwide
.

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 Bibliography

THE SOURCE FROM THE INTERNET:

 https://www.gstzen.in/a/what-is-gstr-1-
details-of-outward-supplies-of-goods-or-
services.html

 https://cleartax.in/s/details-mentioned-
return-gstr-1

 https://cleartax.in/s/gstr-2b

 https://cleartax.in/s/details-mentioned-
form-gstr-3b

 https://cleartax.in/s/5-heads-of-income-tax

 https://help.tallysolutions.com/docs/
te9rel65/Voucher_Entry/
Accounting_Vouchers/#gref

 https://help.tallysolutions.com/tally-
prime/accounting/payments-and-receipts-
tally/

 https://help.tallysolutions.com/docs/
te9rel65/Voucher_Entry/
Accounting_Vouchers/#gref

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